Cricket Wireless 2010 Annual Report Download - page 11

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We expect to continue to develop our product and service offerings in 2011 and beyond to better meet our
customers’ needs.
Handsets and Devices. We significantly expanded our handset and device lineup in 2010, introducing
“smartphones” and other new handsets and devices. Our current handset portfolio includes a wide spectrum of
handsets ranging from higher-end “smartphones” to lower cost models. Our portfolio of handsets provides features
that include full web capabilities, mobile web browsers, picture-enabled caller ID, high-resolution cameras with
digital zoom and flash, integrated FM radio and MP3 stereo, USB, infrared and Bluetooth connectivity, on-board
memory and other features to facilitate digital data transmission.
Cricket Broadband Service. Cricket Broadband is our unlimited mobile broadband service offering. Like our
Cricket Wireless unlimited service plans, our unlimited mobile broadband service allows customers to access the
internet through their computers for a low, flat rate with no long-term commitments or credit checks, and brings
low-cost broadband data capability to the unlimited wireless segment. In August 2010, we introduced new Cricket
Broadband service plans with flat monthly rates that vary depending upon the targeted amount of data that a
customer expects to use during the month. Our Cricket Broadband service is available to our customers in all of the
markets in which we operate as well as through national mass-market retailers.
Cricket PAYGo Service. Cricket PAYGo is a pay-as-you-go, unlimited prepaid wireless service designed for
customers who prefer the flexibility and control offered by traditional prepaid services. Daily and monthly pay-as-
you-go versions of our Cricket PAYGo product are available in all of the markets in which we operate as well as
through national mass-market retailers.
Muve Music Service. In early 2011, we launched Muve Music, our unlimited music download service, in
select Cricket markets, and we expect to expand its availability throughout 2011. Muve Music is the first unlimited
music download service designed specifically for mobile handsets.
Customer Care and Billing
Customer Care. We outsource our call center operations to multiple call center vendors to continuously
improve the quality of our customer care and reduce the cost of providing care to our customers.
Billing and Support Systems. We outsource our billing, device provisioning, and payment systems to external
vendors and also outsource bill presentment, distribution and fulfillment services. During the past year, we
upgraded a number of our significant, internal business systems, including implementing a new inventory
management system and new point-of-sale system. In addition, we expect to transition to a new customer
billing system during 2011. We believe that these new systems will improve our customers’ experience,
increase our efficiency, enhance our ability to provide products and services, support future scaling of our
business and reduce our operating costs. There can be no assurances, however, that we will not experience
difficulties, errors, delays or disruptions while we implement and transition to these new systems.
Sales and Distribution
Our sales and distribution strategy is designed to continue to increase our market penetration, while
minimizing expenses associated with sales, distribution and marketing, by focusing on improving the sales
process for customers, and by offering easy-to-understand service plans and attractive device pricing and
promotions. We believe our sales costs are lower than traditional wireless providers in part because of this
streamlined sales approach.
We sell our Cricket devices and service through direct and indirect channels of distribution. Our direct channel
is comprised of our own Cricket retail stores and kiosks. As of December 31, 2010, we had approximately 350 direct
locations, which were responsible for approximately 20% of our gross customer additions in 2010. In addition, we
continue to target potential new customers through the internet. Some third party internet retailers also sell Cricket
services over the internet.
Our indirect channel consists of our authorized dealers and distributors, including premier dealers and local
market authorized dealers. Premier dealers are independent dealers that sell Cricket products exclusively in stores
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